The Governance Facilitator(s) and the Protocol Engineering Core Unit have placed an out-of-schedule executive proposal into the voting system. MKR Holders should vote for this proposal if they support the following alterations to the Maker Protocol.

If you are new to voting in the Maker Protocol, please see the voting guide to learn how voting works, and this wallet setup guide to set up your wallet to vote.

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Executive Summary

This is an out-of-schedule executive proposal. It has been deployed and added to the voting portal in response to the large wave of surplus (flap) auctions triggered by liquidations at the end of last week and the following urgent signal request.

The express purpose of this proposal is to prevent surplus (flap) auctions temporarily until the auction/burn mechanism can be improved.

If this executive proposal passes, the following changes will occur within the Maker Protocol:

• The existing System Surplus Buffer lerp function will be disabled.
• The System Surplus Buffer parameter will be set to 250 million DAI.

Voting for this executive proposal will place your MKR in support of the changes and additions outlined above.

Unless otherwise noted, the changes and additions listed above are subject to the GSM Pause Delay. This means that if this executive proposal passes, the changes and additions listed above will only become active in the Maker Protocol after the GSM Pause Delay has expired. The GSM Pause Delay is currently set to 48 hours.

If this executive proposal does not pass within 30 days, then it will expire and can no longer have any effect on the Maker Protocol.

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Proposal Details

Temporarily Prevent Surplus (flap) Auctions and MKR Burn

As per this urgent signal request, the following changes will be made if this executive proposal passes.

• The existing System Surplus Buffer lerp function will be disabled.
• The System Surplus Buffer parameter will be set to 250 million DAI.

This change is being proposed to prevent surplus (flap) auctions temporarily until the auction/burn mechanism can be improved. Further details on this issue and the origin of this proposal can be found in the links below:

• Flappy Friday - CLIP and FLAP Analysis
• So is someone going to say anything about yesterday’s FLAP auctions?
• Stop MKR Burning

Review

Community debate on these topics can be found on the MakerDAO Governance forum. Please review any linked threads to inform your position before voting.

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Resources

Additional information about the Governance process can be found in the Governance section of the MakerDAO community portal.

To participate in future Governance calls, please join us every Thursday at 17:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.